MARKET DEVELOPMENT
Palm oil may hover below 5,676 ringgit
Palm oil may hover below 5,676 ringgit
15.02.2022 (www.brecorder.com) - SINGAPORE: Palm oil faces a resistance at 5,676 ringgit per tonne. It may hover below this level or retrace towards the range of 5,484 ringgit to 5,558 ringgit.
As a 200% projection level, the resistance itself is not pivotal. However, it was regarded as a key barrier because the fall from the Feb. 7 high of 5,749 ringgit may extend.
The fall was due to the completion of a five-wave cycle from 4,294 ringgit. It is supposed to extend below 5,292 ringgit.
A break above 5,676 ringgit could lead to a gain into 5,749-5,794 ringgit range.
On the daily chart, the small spinning top forming on Feb. 14 and the doji on Monday suggest a dissipation of the bullish momentum.
Oil may opt to drop towards 5,529 ringgit.
Even if oil could eventually climb above 5,749 ringgit, a correction seems to be imminent.
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